The cryptocurrency ecosystem has added over $12 billion in the last 24-hour period as most top cryptocurrencies are posting double-digit gains in said period, with bitcoin hitting the $3,800 mark after falling to a 15-month low earlier this month.

According to CryptoCompare data, the flagship cryptocurrency rose over 8% in only a day, and has been surging after it dipped below the $3,200 mark on December 15. Its market cap has since risen to $65.9 billion.

The crypto market’s rally, according to eToro senior market analyst Mati Greenspan, could have come as investors are looking to reduce their exposure by “closing out high risk sell positions before the holidays.” As evidence to back up his theory, he pointed out that Bitcoin Cash (BCH) is up the most among top cryptocurrencies.

The recent crypto rally can only be explained as a short covering rally.

People are looking to reduce their exposure and closing out high risk sell positions before the holidays.

Per available data BCH has surged nearly 33% to trade at $114.5. The cryptocurrency has been rising after hitting a $74 low on December 15, but is still down nearly 30% in the last two weeks.

A Potential Rally

When CryptoGlobe asked the analyst whether it’s too early for the cryptocurrency community to celebrate the rally and whether the market has found a bottom, Greenspan noted we may have a reason to celebrate. He said:

This is an excellent setup for the market to try and form a bottom. We may yet get a Santa Claus rally after all. Will be interesting to see how it plays out.

The rally notably comes as more prominent figures appear to be getting bullish. As covered Spencer Bogart, a partner at crypto-focused VC firm Blockchain Capital, recently said this is “a great buying opportunity.”

Altcoins Surge As Crypto Market Adds $12 Billion

Most top altcoins have gone up by over 10% in the last 24-hour period, with Waves – at cryptocurrency that has been bucking the bearish trend – rising a whopping 46.7% to $3.8. Behind it the biggest gainer was BCH, followed by TRON’s TRX, which moved up nearly 15% to $0.016.

Ethereum’s ether has risen 9.9% in said period, to $103, while the XRP token is now trading at $0.371 after rising 11.3%. Privacy-centric cryptocurrencies Zcash and Monero (XMR) rose 8% and 12.1% to trade at $60 and $49 respectively.

Other top altcoins like Dash, NEO, Stellar are also up by about 10%. Litecoin and EOS are among those that saw more modest gains, as LTC is up 5.6% to $30.2, while EOS is up 6.45% to $2.64.